Where to borrow
The same application produces different answers at different institutions. Here is who lends to whom, and what each type is optimising for.
A decline is frequently a statement about the lender's credit box rather than about your business. Understanding what each type of institution is trying to achieve tells you where to go first — and saves weeks.
| If you are... | Start with |
|---|---|
| Established with a banking relationship | Your bank or credit union |
| Borrowing over $150,000 and can wait | An SBA lender |
| Under two years old, or need money fast | Online lenders |
| Declined by a bank, or credit is the obstacle | A CDFI |
| Dealing with a complicated or unusual file | A broker, carefully |
Banks and credit unions
Best pricing, hardest approval. How bank credit decisions actually get made.
Lowest costSBA lenders
Same program, wildly different experiences. The five questions that predict which you'll get.
SBAOnline and fintech lenders
Fast money, transparent-ish pricing, and a cost structure worth understanding before you shop.
FastestCDFIs and community lenders
Mission lenders that serve borrowers banks decline — at a fraction of what an advance costs.
UnderusedBrokers and marketplaces
How brokers get paid, when they add real value, and the questions that separate the two.
Caution